Licensing:Practicing CPAs are required to hold a license through their particular state. In order for the CPA to maintain this license, he or she must generally do two things: (1) complete a certain number of continuing education hours (for example, taking a course on the latest tax deductions), and (2) run his or her business according to specific standards
These standards provide assurance to you that you’re getting a quality service. If you ever have a question about your CPAs legitimacy, you can contact your state’s board of public accountancy and request information about your CPA. Check out this website for a list of each state board’s contact information.
Consistency and Stability: A CPA is going to be there for you year after year. Practicing CPAs are in it for the long run.
Doors are Always Open: A CPA performs many types of financial services, not just taxes. Therefore, their doors are always open for tax questions, tax planning, and for any audit help you may need. Many other tax preparation services close their doors from May to December. Who’s going to help you when you get that audit letter? Your CPA will!
Record Retention: A CPA is going to maintain your tax information much like a doctor holds on the patient’s medical records. Your CPA will act as your own personal filing cabinet through the years. You’ll even get your own copy of the return and supporting documents in a nice little folder for you to file away yourself if you want. Digital formats are also becoming more prevalent.
Tax Planning: The best part about having a CPA is the tax planning advice he or she can provide throughout the year. There are certain year-end tax moves you can make that will save you hundreds in tax dollars. Software and tax preparation companies aren’t around to help you with those things.
Professionalism: As previously mentioned, a CPA is licensed with the state. They’ve gone through a ton of accounting classes, a tough exam, and must maintain continuing education credits each year. Only a person who wants to be a professional is willing to go through what it takes to be a CPA. Of course, CPAs are still just people. But I’ll take the CPA designation over any other type of tax filing option.
Your Time: The last good reason I’ll give you is your time. I’m not going to lie and say that you won’t have to spend a little time preparing your tax files to bring to a CPA. But these professionals will save you the time it takes to enter in all the information and file your return. Each year, the process also gets quicker as you learn exactly what you need to bring to your CPA.